I'd say go for it. Follow your instinct and at least look at or try if you can, Concert and Parlor sized guitars. They won't have the projection or bass of a Dreadnought, but do you really want or need that in the living room? They also don't come with the burdensome body size encumbrance of a Dreadnought. That said, I should at this stage confess to the personal bias disclaimer, I really detest Dreadnoughts.

Personally I use Concert sized acoustics and e-acoustics, I have three, and find them perfect for my purposes. Gobs of natural acoustic projection for any larger room in the average home e.g. 4.5M x4.5M (15ft x 15ft) or small cafe environment, and amplification of any tonal range desired be it passive or pre-amped otherwise.

Smaller bodied pure acoustic guitars are characteristically brighter IME with less base prominence, and depending upon the woods used, frequently warmer tonally which I really prefer as a desired natural tone. My Cort AF for instance with its open pore all (Asian) Mahogany body is notably warmer tonally than my Nato bodied Yamaha APX, although the brightness of the Yamaha has its own appeal, the three offering me a selection of diverse natural tonal characteristics.